Chicago Casino Poses Huge Risk For Investors Industry Players Wary Of The Chicago Casino Proposal
Big Industry players are wary of the Chicago Casino proposal. Operators used to having the advantage, are finding it difficult to agree on one of Chicago’s request. While several gambling companies, are interested in the proposal, the request to construct a state-of-the-art gambling facility that would see its police and fire pension funds go up, is a turn off.
Four big time gambling establishment expressed their intent to build a casino in Chicago last year. Out of the four, two have given up on their plans. The other two insists, Chicago is an opportunity that holds lots of promise in the long run.
The committee in charge of the project would hear from bidders and real estate developers in the coming weeks. However, experts suggest that Chicago’s call for a $1 billion investment could be a turn off. Chicago is proposing a casino project that will house an entertainment center, and a 500-room 5-star hotel. Experts feel the project is ambitious, and might be too much for the city’s resources.
“The casinos in the state have been in nothing but a downward spiral for a decade, except for Rivers,” said Alan Woinski, president of Gaming USA, a consulting firm and newsletter publisher. “There’s no reason to believe that if you add a casino downtown that you’ll do anything but cannibalize the others, including Rivers. It’s kind of a zero-sum game and everybody loses.”
Project Obstacles
Critics foresee several obstacles along the way, notably tax rate. In addition, a recent proposal to welcome sports betting to Chicago Stadiums could be a massive competition to the casino project.
According to Woinski, sportsbooks can attract a sizeable number of persons, but it might not bring huge cash flow “that’s one less reason for people to physically go to the casino,” he said.
Woinski says the presence of other entertainment options might dampen the performance of casinos. However, from the analysis of places with different array of entertainment options, there is no distinct conclusions.
